Seems everyone who warranties a Pike, Reverb, or other SRAM stuff ends up getting brand new in the box replacements.
Out of interest does anyone know where all the broken stuff goes to? Its clearly not recycled.
It is rare for a manufacturer to publically tell the whole truth, where they for example break warranty return items for spares, for other warranty return items or for sale/ebay. It happens not just in the bike parts world!
I used to work for a sports equipment distributer and did some time in the warranty / returns section. There were a host of boxes on racking with returned / damaged / broken warranty pieces of equipment.
They were often used for spares should a returned item be fixable and the doner in as new condition, only little things like external / aesthetic pieces.
I did get to build up fully working examples of some things, that if they worked I could keep 
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There was a thing in one of the mags about Fox, who took all their warranty stuff back for inspection and presumable recycling thereafter. I'd assume SRAM are the same.
Back in 80's My mate at school used to grab sawn off sections of failed Crack-n-fail (aka Cannondale) front ends from a skip round the back of somewhere in SW London. Presumably they were rendering them useless. Made cool souvenirs though!
Cool story, huh.
Reverbs go for controlled destruction due to the pressure involved internally when they fail. They don't even strip them now just replace and dispose.
I'm now on my fourth Reverb, previous ones have all been swapped under warranty. Part of me feels guilty at sending back an item that I'm sure can be serviced but if they are prepared to readily send a replacement then SRAM must have something in place to either recycle or reuse certain parts. Unless of course profit margin is so high it's really not an issue to them the sheer amount of returns...
I think the market price of a reverb covers the cost of several warranty jobs. I recently had the choice of returning a reverb for warranty replacement or getting it repaired by lbs, felt mother earth touching me gently as the lbs repaired it
Northwind's garage
Merlin used to skip/bin all warranty stuff but had to stop due to break ins to the external skip - this is about 8-10 years ago.